Daybreak Why VCs love founders with baggage more than founders with new ideas
18 snips
Aug 17, 2025 India's venture capital scene is experiencing a significant downturn, with funding at a low not seen since 2016. Surprisingly, investors are choosing to back founders with troubled pasts instead of fresh ideas. The success of familiar names like Pharmeasy's co-founders highlights a shift towards leveraging past experiences, even if they come with baggage. The podcast dives into the paradox of supporting troubled founders and how this reflects broader trends in investment strategies, all amidst a challenging startup landscape.
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Market-Wide Funding Drought
- Indian VC funding has plunged, with H1 2025 investments at their lowest since 2016 at $3.6 billion.
- The slowdown follows a sharp drop in VC fundraises and fewer large funds able to deploy capital.
Baggage Beats Fresh Ideas
- When new deal flow dries up, investors favour repeat founders with known outcomes over unproven founders.
- The calculus shifts toward minimising the risk of missing quick exits rather than picking long-term winners.
FarmEasy Founders Raise Again
- FarmEasy's co-founders raised money for All Home despite FarmEasy collapsing from a near-$6 billion peak to $460 million.
- The Ken documented mis-selling of medicines at FarmEasy, yet top VCs still backed the founders again.